Margin Debt Drop Signals Fade of Meme Frenzy, Sets Stage for Further Gains
• Margin debt is down 25% from its peak in 2021, suggesting the meme-stock mania has faded • Lower margin debt signals less speculation, indicating the market isn't in a bubble • Strategists see room for more stock gains with margin debt still below prior peak • $6 trillion in money market funds represents buying power that could enter stocks • As Fed cuts rates, lower margins could fuel more equity buying